A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand financial trouble. Losses, on the other hand, reduce a bank's ability to do those things.
Greater State Bank fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. Greater State Bank's most recent annualized quarterly return on equity was 1.84 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $129,000 on total equity of $7.0 million. The bank had an annualized return on average assets, or ROA, of 0.18 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.